ICICI Direct's research report on Oriental Hotels
Oriental Hotel (OHL) operates in South India with Indian Hotels Company (IHCL) being one of the promoter entities. The company owns and operates seven hotels with ~825 rooms across business & leisure locations in the south. It derives majority of revenues from two of its properties in Chennai 1) Taj Coromandel 2) Taj – Fisherman’s Cove. Tata Group companies hold ~39.1% stake in OHL and the company is an associate of IHCL (28.6% stake). Apart from the ownership, the company has strong operational and financial linkage with IHCL.
We remain positive on the company and maintain our BUY rating. We value the company at Rs 80 i.e.21x FY24E EV/EBITDA or Rs 2.0 crore EV/room (vs. earlier target price of Rs 73/share).